Posted on: 14th Nov, 2008 11:52 am
My wife and I hit on real hard financial times a few years ago (2001) and owe around 8K in back taxes. We only owed 1,500 but with penalties it has ballooned. I am about to be given 30,000 worth of property. And hope to use the property as collateral (down payment) to build a small house. Recently, I received notice that I have a Federal tax lien for the $8,000 in back taxes. Will I be able to get a loan from the bank and wrap the payment of the taxes into that in any way? Or am I just out of luck until the tax lien is paid and released?
Hi jasongs!
As far as I know, you will have to clear the tax lien first. Then only the lenders will give you another loan. If there is a lien on the property, the lenders are not ready to give loans.
Thanks,
Jerry
As far as I know, you will have to clear the tax lien first. Then only the lenders will give you another loan. If there is a lien on the property, the lenders are not ready to give loans.
Thanks,
Jerry
You will need to pay off the tax liens.
Federal leins can turn into judgements and be placed against property you own. The lender has a vested interest in the property you own and cannot take the risk of a judgement.
You might be able to negotiate your liens if you are willing to pay them off.
Federal leins can turn into judgements and be placed against property you own. The lender has a vested interest in the property you own and cannot take the risk of a judgement.
You might be able to negotiate your liens if you are willing to pay them off.
Yes, you will have to deal with the tax lien. Aside from the fact that interest charges continue to accrue, most loan programs require that all judgments and liens be taken care of prior to closing.
With subprime loans, there were options that were more flexible. But, subprime in general is now dead, and conventional financing guidelines are a lot more strict. Good Luck.
With subprime loans, there were options that were more flexible. But, subprime in general is now dead, and conventional financing guidelines are a lot more strict. Good Luck.